The laws governing online trading

The laws governing online trading

The laws governing trading simply mean that the price of an asset cannot rise indefinitely, nor can it fall indefinitely, just like a pendulum, it will eventually return to a state of equilibrium where the flow of money between different financial markets shows the relationship between ups and downs.

You must first recognize if the risk and the expected return are equal Use this to determine the target entry price and stop loss price Don’t believe the law easily.

What are the general rules for fluctuations in foreign currencies

  • When there are very little market volatility days in a row, there will be a high probability of very high volatility days.
  • If the market remains range bound for 3 or more consecutive days with minimal volatility there is a high probability of high volatility days on one side.
  • If the market has had very little volatility for 3 consecutive days or more, it will continue to act on one side at this time, traders need to distinguish whether the trend is at the beginning or the end.
  • A trend of the day that causes high volatility is likely to be the ideal one as the greater possibilities of triggering a highly volatile daily trend are paradoxical when the law of forex volatility is not clear.

Are there any rules for forex trading?

Laws Governing Trading Although changes in the market cannot be easily controlled by humans, investing in foreign exchange generally includes three steps which are prediction, decision making and execution of transactions.

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Although price has a predictable side, there are certain rules that must be followed in the movement of forex prices.

First, the direction and frequency

There is a certain trend in the price structure such as long-term trends, medium-term trends, and short-term trends.

The laws governing trading in different time structures will affect each other in foreign exchange transactions, due to the different trading cycles that investors choose, trends in each time structure have different significance for different investors.

Second, the psychological characteristics of the market

The essence of price action lies in the rise and fall of the forces of the long and short sides, and psychoanalysis is based on the repetition of patterns of human behavior.

Repeat psychological changes Recent investment psychology research has found that the psychological activities of investors have some fixed patterns, which will be expressed through price patterns.

By studying price patterns, it is possible to identify the laws of psychological activities of investors, in order to deepen the understanding of the basic characteristics and morphological characteristics of the investment market; Deepening the understanding of the basic characteristics of investment risks in the investment market, deepening the interaction between the investment market and market investors, and identifying the characteristics of the relationship.

The second step

In forex investing is making investment decisions based on expectations The act of investing is basically the laws governing trading and investing as it starts with untested assumptions.

Investors need to know how to handle assumptions and the only thing that works is testing them, so in the decision-making process they should be clear about any investment opportunity.”

What direction are you taking, how do you judge the right process? How do you control errors? Risk Control + Risk Management?

The last step in forex investment and financial management is to implement the trading plan with a random price. Characteristics indicate that the best decision is only an approximation.

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Are there any rules for forex speculation?

From 5 to 12 am, the market is generally very light This mainly because the momentum of the Asian market is small, the general volatility range is around 30 pips, mostly market adjustment and correction.

Often times even reversing the day since most of the market in this period has no trend at all, margin traders can notice it around 6-8am.

If the market is in ups and downs, they can do 5-15 when the market fluctuates for both ends, if you still can’t make money after 11, you need to make peace in time.

This method is called the five-point method is believed to try not to issue orders at this time, study and judge to seize the big opportunities.

Many opportunities in the foreign exchange market

From 14 to 18 pm is the morning European market After Europe starts trading, the money will increase.

The foreign exchange market is a market where money is accumulated, so a large amount of money causes large fluctuations in the market.

This period will also be accompanied by some data announcements that have an impact on the European currency.

This market is usually accompanied by technical indicators such as divergence and breakout in the evening, 18-20 is the noon break in Europe and early morning from the US market, and 20-24 is the afternoon session of the European market The morning session of the American market, this time period is The period when the market fluctuates the most, generally above 80 pips.

What are the rules for forex trading hours?

From 5 to 14 am the market is generally very light This is mainly due to the small driving force of the global market, which generally fluctuates within 30 pips and has no clear direction.

Mostly for adaptive and often callback market even reversing today since most of the market in this period has no trend at all, margin traders can notice it around 6-8am.

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If the market is in ups and downs, they can do 5-15 when the market fluctuates for both ends.

Just set the profit and not the stop loss, if you still can’t make money after 11:00, you need to make an adjustment in time, this method is called the five point method.

Laws governing online trading

There are many rules governing trading that give opportunities in the foreign exchange market, the afternoon is the European morning market, and after 15, there is the general market price.

Once Europe starts trading, the money will increase The foreign exchange market is a market in which money is accumulated, so a large amount of money causes large fluctuations in the market.

This period will also be accompanied by some data announcements that have an impact on the European currency.

The general volatility range is about 40-80 points

During this time period, the real market will generally start after 15:30, and this market is usually accompanied by technical indicators such as divergence and breakout, so it is a good opportunity to snap it.

From 18-20 pm, it is the noon break in Europe and early morning for the US market, which is relatively light and on the eve of waiting for the start of the US.

20-24 hours is the evening session for the European market and the morning session for the American market.

This is the period when the market fluctuates the most, and it is also the time when the amount of money and the number of participants are the largest.

In general, the market exceeded 80 pips during this time period, it will act in the direction of the day, so to judge this market, we must follow the general trend in the laws governing trading.

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